Solana ETF Approval on the Horizon? Galaxy Digital’s Big Move Hints Yes

Will Galaxy Digital Trigger SEC Solana ETF Approval? Market Watches 5 Key Indicators

The cryptocurrency market is buzzing as traders closely watch Galaxy Digital’s recent $50 million movement of Solana (SOL) to Binance. The transaction, which involved a staggering 250,000 SOL, has sparked speculation about whether the Securities and Exchange Commission (SEC) might approve a Solana-based exchange-traded fund (ETF) soon. As October 16 approaches, investors are analyzing market activity, institutional moves, and technical indicators to predict what could be one of the most significant developments in the crypto sector this quarter.

Galaxy Digital Moves $50 Million SOL: Sell Signal or Strategic Adjustment?

Earlier this week, Galaxy Digital transferred a substantial amount of SOL tokens to Binance, prompting speculation among traders and market analysts. Such large-scale movements naturally raise questions: Is this a signal for a sell-off, a hedging strategy, or part of portfolio rebalancing ahead of the fourth quarter?

Source: Coin Bureau X Account

Experts point out that large crypto firms like Galaxy Digital often transfer tokens to exchanges not necessarily to sell. The exchanges provide flexibility for staking, liquidity rotation, or treasury management. As a result, market participants are divided between seeing this as a routine strategic adjustment or a precursor to a major market-moving announcement.

Why a Solana ETF Approval Could Be Near

The possibility of SEC approval for a Solana ETF has generated significant excitement in the crypto community. Several factors are pointing toward a potential approval window in the coming days:

1. Institutional Portfolio Rebalancing
Galaxy Digital’s large SOL transfer reflects the preparation by institutional investors for upcoming ETF announcements. When firms adjust holdings at this scale, it often signals anticipation of new investment products or regulatory milestones.

2. VanEck ETF Filing Updates
VanEck, a leading asset management firm, recently updated its Solana ETF filing, including a fee adjustment to 0.30%. Such changes often precede final regulatory approval, signaling readiness for market launch.

3. Analyst Predictions
Prominent analysts, including Ted Pillows, have suggested that the SEC’s decision on a Solana ETF could be imminent, potentially as soon as October 16. This projection has intensified trader focus and market speculation.

4. Price Momentum and Recovery
SOL has seen a price increase of approximately 5% in the last 24 hours, currently trading near $203. This recovery follows a previous dip, indicating positive momentum ahead of potential ETF news.

5. Solana Inflows
In the past 24 hours, Solana has experienced the largest stablecoin inflows among all major blockchains, with a total supply surpassing $13 billion. High inflows often correlate with increased investor confidence and positioning for anticipated market events.

Collectively, these indicators suggest that Solana ETF approval could be closer than many expect, creating a high-stakes environment for traders and investors.

Technical Analysis: Chart Signals

A closer look at SOL’s trading charts reveals several key insights. The token is currently trading at $204.13, marking a 5.32% increase over the past day, though trading volume has decreased by 18.75%.

Trend Analysis
After a sharp drop on October 11, SOL has exhibited a V-shaped recovery, maintaining higher lows above $200. This pattern is often interpreted as a bullish signal, especially when aligned with institutional movements.

Momentum Indicators
The Relative Strength Index (RSI) is around 57, suggesting the token is neither overbought nor oversold, leaving room for further upside. Meanwhile, the Moving Average Convergence Divergence (MACD) remains slightly positive, indicating gradual momentum but not yet a strong breakout.

Support and Resistance Levels

• Support: $195 – Maintaining this level is crucial to sustain bullish sentiment.

• Resistance: $215 – Breaking above this level could trigger a significant upward move, particularly if paired with positive regulatory news.

Potential Price Scenarios After Galaxy Movement

Depending on the SEC’s decision and market reaction, SOL could follow one of two primary trajectories:

Scenario 1: SEC Approves Solana ETF
If the SEC approves the Solana ETF, analysts predict SOL could reach $215 initially, with potential spikes to $230–$240. Sustained momentum, combined with institutional and retail buying, could even propel prices to $250–$270. This scenario would mark a strong bullish cycle for Solana and reinforce investor confidence in altcoin ETFs.

Scenario 2: SEC Delays or Denies Approval
Conversely, if the SEC delays or denies the ETF, SOL may experience a pullback to $190. If this support level fails, prices could further decline to $180–$185, with a worst-case scenario reaching $170. Traders would need to closely monitor these levels for short-term risk management.

Broader Implications for the Crypto Market

Galaxy Digital’s strategic SOL transfer and the potential ETF approval represent a microcosm of the evolving relationship between cryptocurrencies and traditional financial markets. Institutional movements, combined with regulatory decisions, are increasingly influencing altcoin price dynamics, investor sentiment, and liquidity flows.

For investors, understanding these “binary triggers” is essential. The next 24–48 hours could define SOL’s trajectory for Q4 2025, impacting portfolio strategies, derivatives positions, and hedge fund allocations.

Moreover, the approval of a Solana ETF would be a milestone for the broader crypto sector, signaling growing acceptance of blockchain-based assets in regulated financial markets. Such a development could pave the way for other altcoin ETFs, potentially transforming market accessibility for both institutional and retail investors.

Conclusion: Eyes on the SEC and Institutional Moves

As Galaxy Digital’s $50 million SOL deposit to Binance dominates market headlines, the crypto world is watching intently. Coupled with VanEck’s ETF fee updates, high stablecoin inflows, and bullish price recovery, the market is bracing for a pivotal moment in altcoin trading.

Investors should closely monitor support and resistance levels, institutional movements, and the SEC’s announcement, as these factors will likely determine SOL’s performance in the coming weeks. Whether the ETF is approved or delayed, the next few hours represent a defining period for Solana and the broader crypto market.

For traders, the stakes have never been higher: a single regulatory decision could spark a major bull run or trigger a corrective phase, highlighting the growing influence of institutional behavior and regulatory signals on digital asset markets.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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